A Fed panic and a massive bailout of American banks

[katty]

continue: http://onlinejournal.com/artman/publish/article_2452.shtml

Analysis Last Updated: Sep 24th, 2007 - 01:02:38

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A Fed panic and a massive bailout of American banks paid for by the entire world
By Rodrigue Tremblay
Online Journal Guest Writer

Sep 24, 2007, 01:00

Manias, panics, and crashes are the consequence of an economic environment that cultivates cupidity, chicanery, and rapaciousness rather than a devout belief in the Golden Rule." --Peter L. Bernstein, Foreword to Manias, Panics, and Crashes (4th ed.) by C. P. Kindleberger

"In a crisis, discount and discount heavily." --Walter Bagehot (1826-1877), British economist

"The job of the Federal Reserve is to take away the punch bowl just when the party starts getting interesting." --William McChesney Martin (1906-1998), Fed Chairman (1951-1970)

"The dysfunctional state of American politics does not give me great confidence in the short run.'' --Alan Greenspan, Fed Chairman (1987-2006)

The mismanagement of money and credit has led to financial explosions over the centuries. The causes, cures and consequences of such financial catastrophes are most often repetitive. Indeed, such financial collapses are usually the result of the unbridled greed and cupidity of financial operators and of the lack of necessary supervision by public institutions designed to protect the public and the common good.

For example, after the October/November 1907 financial crisis in the United States, the idea initially advanced by banker Paul Warburg to establish a partially private and partially public Federal Reserve System of banking was finally adopted in 1913.

[lovuian]

1. Get a good look at Rush of Northern Rock

it might happen here

http://youtube.com/watch?v=dXtvbxEhv6g

[katty]

2. yes, I checked that out over a week ago-it certainly 'could'

happen here.

[thereismore]

3. Who bails out the people unable to pay the banks? nt

[Baby Snooks]

4. Depends...

It depends on who wants to gobble up their corporation. Enron is still very much a corporation. Just waiting to emerge from bankruptcy. The way MCI did. Leaving investors high and dry. But the banks and the "insiders" very rich with their "new" MCI stock.

[Double T]

5. It is ALL ABOUT regulation and oversight WITHOUT political influence........

specially of the greed mongering neocon and CONServative variety. The ongoing current economic collapse is nothing new but it will be extremely difficult to establish a recovery with so many jobs outsourced to foreign nations. Traitorous corporate ANTI-america and their henchman investors, enabled by our elected government representatives, have destroyed this nation and this nation's economy.

[seafan]

6. More sobering quotes from this article:

A Fed panic and a massive bailout of American banks paid for by the entire world

By Rodrigue Tremblay
Online Journal Guest Writer

Sep 24, 2007

.....

As a consequence, mortgage debt as a percentage of disposable income in the U.S. is at the highest level it has been in 75 years, reaching 100 percent, while consumer debt has risen to its highest level in history. All this makes the economy more vulnerable than it has been since the 1929-39 depression. Another consequence of this binge of easy money has been the frenzy of leveraged buy-outs and industrial concentration that we have observed over the last few years.

Finally, let's put the cherry on the cake. Indeed, there is a most disturbing piece in former Fed Chairman Alan Greenspan's recent memoirs (The Age of Turbulence) and in the explanations he gave in interviews granted to promote his book, and it is his confession that while he was chairman of the Fed he actively lobbied Vice President Dick Cheney for a U.S. attack on Iraq. If this was the case, it was most inappropriate for a central banker to act this way, especially when he had other things to do than lobbying in favor of an illegal war. Does it mean that Mr. Greenspan was an active member of the pro-Israel Lobby within the U.S. government and joined the Wolfowitz-Feith-Abrams-Perle-Kissinger cabal? It would seem to me that such behavior would call for an investigation.

Indeed, to what extent was the pro-Israel Lobby responsible for the Iraq war and the deficits it generated? Already, polls indicate that 40 percent of American voters believe the pro-Israel Lobby has been a key factor in going to war in Iraq and that it is now very active in promoting a new war against Iran. This figure is bound to rise as more and more people confront the facts behind this most disastrous and ill-conceived war. Indeed, how many wars can this lobby be allowed to engineer before being stopped? And, to what extent can the current financial turmoil in U.S. and world markets be traced back to the influence of this most corrosive lobby?

[cliss]

7. Now that the party's coming to an end ~

what can we reflect on? Wasn't 1929 hard enough? Weren't measures set in place to prevent something like that to ever happen again?

R.I.P. US Economy

It's easy to blame the Fed. Greedy corporations, slimy weasels who cash in their chips and take off for the Bahamas. Bush, Cheney, the whole lot of them.

Why do we keep doing this?
The weasels didn't do it alone. They had accomplices: the American public. It seems like it might be difficult to prevent crashes because every generation has a new crop of greedy people with very short memories. They all seem to think this time it will be different!

I really, REALLY feel bad for my close friends who are heavily invested in the American Way Of Life. Lots and lots of debt, a mortgage which is too high. The wife lost her job. Now, they're trying to figure out what to do next. Meantime, they are both out shopping at Estate Sales, garage sales, even Good Will you name it Cuz Ya gotta SHOP right?

I just shake my head. It's gonna take some time here.:smoke:

[katty]

8. yes, concur - many accomplices-we have to face ourselves

now-and will probably be forced to re-evaluate 'our values', re: American lifestyle...things, things, and more things.